OIG: What can the Postal Service do to reduce workers’ compensation costs?

The USPS Office Of Inspector General asked readers the following question:

What can the Postal Service do to reduce workers’ compensation costs?

In fiscal year 2009, the Postal Service workers’ compensation expense was approximately $2.2 billion, an 81 percent increase from $1.2 billion in FY 2008. These costs include $55 million in DOL administrative fees for FY 2009. About 72 percent ($718 million) was a non-cash charge related to changes in the estimated discount and inflation rates used to calculate the liability for future payments. At the end of FY 2009, the Postal Service estimated the total liability for future workers’ compensation cost was over $10 billion.

One of the contributing factors to the high cost of workers’ compensation payments is that FECA does not mandate a cut-off age for workers’ compensation benefits. Thus, injured workers can continue to receive workers’ compensation benefits well past the legal retirement age of 65, and in some cases employees over the age of 90 are still receiving workers’ compensation benefits.

Fraudulent workers’ compensation claims also result in higher overall costs. To combat workers’ compensation fraud the OIG launched its crime prevention and awareness campaign in September 2009 and a joint year-long initiative with the U.S. Postal Inspection Service in February 2010. The successful investigative efforts saved the Postal Service more than $400 million for fiscal years 2009 and 2010 combined.

Submit answers to poll at the USPS OIG blog
Related links:
USPS OIG, USPIS Launch Workers’ Comp Fraud Initative (January 18, 2010)
Senator Susan Collins Seeks Reforms To Federal Workers’ Comp Program (January 12, 2011)

5 thoughts on “OIG: What can the Postal Service do to reduce workers’ compensation costs?

  1. DAILY I TAKE 3-4 PAIN PILLLS JUST TO MAKE IT THRU MY 4 HR RESTICTED DUTY FOR CARPAL TUNNEL SYNDRUM THAT DEVELOPED W/IN MY Ist 10 YRS IN SERV. THIS WILL NOT STOP ME FROM GOING TO WORK EVERYDAY.
    MR. POTTER IF YOU CAN FIND A DOCTOR THAT WILL SIGN OFF FOR ME TO WORK EXTRA HRS. LET ME KNOW

  2. Sure, “potter”, every problem is always the union or some benefit for workers. It could never be poor management, thieving corporations, crooked politians, ect….

  3. one of the problems is postal managers make it close to impossible to return to work if you have medical restrictions they have told me if i am not 100% then i cannot return to my bid job, i have same restrictions i had for three years prior to surgery but yet after surgery i was told accommodation no longer reasonable.no seems to care about the presidents executive order #13548 because the portland maine management are not paying any attention to it. i have tried in vain to get some answers but as you can see in portland maine i do not spell my name right.the only time the post office payed attention to me was back in august 1991 read the postal record of that date. they were real quick to suck up the news media coverage back then,but i am chooped liver to them now, sad after a 25 year career all iwanted is to finish my three years and retire normally, i wonder if anyone cares to reply to this or call me phone 207-846-4746.

  4. the whole system including FMLA needs to be overhauled as there are way too many employees on disability and light duty. Once they get into the system, they almost never return to full duty. It is like a excuse not to work. People take advantage of the FMLA and use any little ache to get out of work and they laugh about it and say everybody else does it so why not them?

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